CRYPTO BAFFLEMENT IN INDIA A LITMUS TEST OF MODI LEAD NDA GOVERNMENT
When this piece of writing is going on, Bitcoin and Dogecoin are down by ~7% and ~10% respectively in last one week. Some credit goes to the market rumors and statements given by key persons of Indian government, intentionally or unintentionally.
This is the situation of the country having highest number of crypto owners ~10.07 crore and fifth by percentage of population investment. (A study by Broker Chooser). So the decision by the Government of India will decide the speed of the Indian economy in later stages.
This is not the first time when this kind of situation came to Indian Government. In fact every country and every government face this kind of situation. But in case of India it has been always turn in to poor decision. Be it refuse of the UN seat at 1950 or in 2018 order of the Central bank of India to prohibit in dealing in crypto. Thanks to Supreme Court who took down this order at later stage.
This is not the limit, in 2019 a government panel recommended jail up to 10 year on people who deal with crypto in any form starting from mining to trading.
One thing people must understand that the situation seems confusing between RBI and Government.
Government has to take care of every aspect and RBI has to find out the ways of dealing with the new currency which is not under their control and the loss or gain effect on the present controlled currency.
If we see technology word, then in last 5 years world has seen huge growth in patent market. And patent increase indicates increased disruption and increased market activity. According to forbes patent data, the cryptocurrency sector has grown by over 530% over the last five years. USPTO data confirms this sector growth over time, including early growth as high as two times in 2018.
More and more investments in R&D and innovation is seen by companies over globe in this technology be it crypto currency, blockchain technology, tokenization, DApp development. Banning crypto means banning this all and it is as simple as that.
In reality, situation must be very simple that there is no way to stop the change. Change is inevitable and part of the system and so as the currency. Future has shown many examples where trying to fight the change has proven fatal. It will be always better to find out the ways to deal with the new change in fact to gain from the new change.
The government must understand the innovative nature of the people and must give the good platform with high security to play with the crypto. And the RBI must overcome the fear of the new technology and should invest time in learning and finding new solutions to over come the pitfall of change.
At Collonamde we are convinced about the potential of the people of India and believe that the government must allow the new technology to serve empowerment to the country by innovation.